Due Diligence in Procurement

Introduction

The course explores the competencies needed for execution of environmentally and socially responsible procurement while upholding value for money. It explains the process for integrating environmental and social safeguard parameters at the appropriate stage of the procurement process in a legally-compliant manner.

Sustainable Procurement Factors

A. As defined by the High Level Committee on Management Procurement Network, "Sustainable Procurement integrates requirements, specifications and criteria that are compatible and in favour of the protection of the environment, of social progress and in support of economic development, namely by seeking resource efficiency, improving the quality of products and services and ultimately optimizing costs." Sustainable Procurement considers the economic, social and environmental consequences of activities across the life cycle of a product. Achieving an appropriate balance between economic, social and environmental factors is of paramount importance, particularly for the UN system, which is accountable to its members for progressing towards a wide and complex array of environmental, social, humanitarian and development goals including the Sustainable Development Goals (SDGs). Sustainable Procurement looks beyond the initial purchase price and short-term costs, to realize the long-term value for the organization.

Due Diligence: Process and Responsibility

Standard Operating Procedures (SOPs)

The following Standard Operating Procedures (SOPs) are guidelines for undertaking due diligence in environmental sustainability and social safeguards in procurement. Conducting due diligence is a preventive measure against the potential for violating Pakistan national laws and international laws that Pakistan has ratified on the environment and social safeguards (human rights).

Due Diligence Assessments

This section highlights some practical aspects of both environmental and social situations that arise in procurement activities. You will have a chance to view some examples that you will likely come across during the implementation of the due diligence policy and think about how to remedy these actions with regard to the Standard Operating Procedures that we have already looked at.

Due Diligence Criticality Index (DDCI)

The due diligence criticality index is an innovation from the UN’s programme criticality index that puts in place guiding principles and a systematic structured approach in using programme criticality as a way to ensure that programme activities can be balanced against security risks. The due diligence index will use a similar structured approach in using the due diligence assessments on environmental sustainability and social safeguards.

Due Diligence Assessment

This is a risk assessment form that will be made available to all vendors and programme partners at the appropriate procurement stage (RFQ, ITB RFP, and EOI). It will be available on all UN agency websites in both English and Urdu. Spend 10 minutes familiarising yourself with the due diligence assessment form that you will be providing to vendors and program partners. For vendors and program partners taking this training, do ensure that when you are provided with this form you answer the questions correctly. Any falsified information will lead to appropriate consequences.